X revoked developer API access for InfoFi apps on Jan. 15 as part of a push to reduce AI-generated spam and reward-driven reply farming. Nikita Bier, head of product at X, announced the policy change, saying applications that pay users for posting are no longer welcome on the platform. The move immediately targeted automated accounts and programs built around incentivized posting, with consequences rippling through projects that relied on X integrations.
X's Policy Change on InfoFi Apps
The policy shift cut API access for so-called InfoFi apps, a class of projects that tied financial incentives to engagement metrics. X framed the change as a response to a surge of low-effort, AI-optimized posts and reply spam that crowded timelines and distorted signals. With payouts expected to stop, the company anticipated automated accounts and reward-driven activity would disengage from the platform.
Impact on Kaito and KAITO Token
One immediate casualty was Kaito: its X-based "Kaito Yapper" community was banned following the announcement. The group counted roughly 157,000 members and had functioned as a hub where users earned rewards based on AI-scored engagement. Market reaction was swift — KAITO slid about 17% to 20% in the hours after the ban, dropping from roughly $0.70 to near $0.56, and floor prices for Kaito’s Yapybaras NFTs also declined.
The shock to Kaito’s ecosystem illustrates how dependent some projects had become on X’s API for visibility and payout mechanics. In related market moves, platforms have been adjusting token-related listings and access, a trend visible across exchange and token platforms such as Binance Alpha token removal.
Reactions and Future of InfoFi
Reactions split: some users praised X for reducing spam and restoring signal to timelines, while others accused the company of hypocrisy for restricting reward-based apps. Onchain sleuth ZachXBT publicly criticized projects that ran what he called "AI slop" campaigns on InfoFi platforms, calling out inorganic activity and fake metrics. X suggested affected developers consider other platforms such as Threads or Bluesky as they rethink incentive models.
The policy forces InfoFi teams to re-evaluate how financial incentives coexist with open social platforms and whether reward-driven posting can be sustained without the tooling X previously provided. Developers face a strategic reset if they want to preserve token utility and community engagement off X.
Why this matters
If you run mining rigs or hold crypto tied to InfoFi projects in Russia, the immediate effects are practical and financial. Projects that relied on X for distribution and reward mechanics can lose a key channel overnight, which may reduce demand for their tokens and NFTs and cause price drops like the one seen with KAITO. At the same time, your mining operations and hardware are unaffected by a platform policy change, but token holdings and market liquidity can change quickly.
What to do?
- Check your exposure: review any KAITO tokens or related NFTs in your portfolio and note recent price changes.
- Pause actions that depend on X-based payouts: stop tasks or scripts that post to X for rewards until the situation is clear.
- Communicate with your communities: if you run or participate in groups tied to InfoFi projects, document the change and consider moving discussions to alternatives such as Threads or Bluesky.
- Monitor liquidity and listings: watch where tokens are tradable and whether marketplaces or exchanges adjust support; be ready to move assets if needed.
- Diversify risk: avoid concentrating holdings in projects whose value depends on a single platform’s API access or reward mechanics.
FAQ
What exactly changed in X’s API policy? X revoked developer API access for InfoFi apps and announced a ban on applications that reward users for posting, aiming to cut off incentive-driven posting and AI-generated reply spam.
Who announced the change? Nikita Bier, head of product at X, made the policy shift public.
Which projects were affected first? Kaito’s X-based "Kaito Yapper" community was banned; that group had about 157,000 members, and KAITO token and related NFT floor prices fell after the ban.
Can InfoFi apps operate elsewhere? Affected developers can consider migrating or adapting to other platforms, and X specifically pointed to alternatives like Threads and Bluesky as places to explore.
